Under ISA 580 (Written Representations), if management refuses to provide a requested written representation regarding the reasonableness of a material warranty provision, what initial step must the auditor take?

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Economics · Written Representations

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Discuss the matter with management, re-evaluate their integrity, and consider the impact on other audit evidence.

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Answer 1

Resign from the audit engagement immediately without further communication.

Answer 2

Discuss the matter with management, re-evaluate their integrity, and consider the impact on other audit evidence.

Answer 3

Report the matter directly to the national financial regulatory body.

Answer 4

Issue an unmodified opinion with an explanatory paragraph.

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